S&P 500 (NYSE:SPY) component Eaton Corporation (NYSE:ETN) reported net income above Wall Street’s expectations for the second quarter. Eaton is a power management company offering services in the sectors of electricity, hydraulics, aerospace, truck, and automotive.

Results: Net income for the machine industrial rose to $382 million ($1.12 per share) vs. $336 million (97 cents per share) in the same quarter a year earlier. This marks a rise of 13.7% from the year-earlier quarter.

Revenue: Fell 0.5% to $4.07 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Eaton Corporation reported adjusted net income of $1.15 per share. By that measure, the company beat the mean estimate of $1.09 per share. It fell short of the average revenue estimate of $4.24 billion.

Quoting Management: Alexander M. Cutler, Eaton chairman and chief executive officer, said, “We are pleased with our record second quarter results. Core sales grew three percent and acquisitions added one percent of growth, which were offset by a negative five percent from foreign exchange, largely from the lower value of the euro and the Brazilian real.”

“End markets grew three percent in the quarter. “Our revenues were impacted in the second quarter by lower than expected end market growth and by lower than expected foreign exchange rates,” said Cutler.

“Nonetheless, we had strong incremental margins on our volume growth during the quarter, which allowed us to increase our segment margins to 14.7 percent, setting a new segment operating margin record for the second quarter. “We also had record second quarter cash flow, with our operating cash flow totaling $469 million,” said Cutler.

Key Stats: The company has now seen its net income rise for three quarters in a row. In the first quarter, net income rose 8.4% and in the fourth quarter of the last fiscal year, the figure rose 29.3%.

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 21.1%.

The company has beaten estiamtes for two quarters in a row. In the first quarter, it topped expectations with net income of 92 cents versus a mean estimate of net income of 90 cents per share.

Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for third quarter has fallen from $1.24 per share to $1.20. For the fiscal year, the average estimate has moved down from $4.54 a share to $4.36 over the last sixty days.